Report Wire

Tag: input tax credit

  • GSTN new ledger for ITC reversal, reclamation: Steps that taxpayers have to take

    In a bid to simplify compliance and supply higher visibility to the regulator, the Goods and Services Tax Network (GSTN) has launched an all-new ledger to trace the reversal and reclamation of the Input Tax Credit (ITC). Known as Electronic Credit and Re-claimed Statement (ECRS), it’ll present taxpayers with the stability of all enter tax credit score that has been reversed and reclaimed on a selected date.

    What are the following steps that taxpayers have to take?

    As a direct subsequent step, taxpayers should report the amassed ITC reversed stability as a one-time motion. The similar will must be executed by thirtieth November 2023. 

    “For month-to-month filers, the ITC reversed till the July 2023 return interval will must be reported, whereas for quarterly filers till the April to June 2023 return interval. Between thirtieth November and thirty first December 2023, taxpayers will solely be allowed to amend their opening stability as much as a most of 3 times. Post thirty first December 2023, the choice to amend the opening stability will even be withdrawn,” stated Archit Gupta, Founder and CEO, ofClear.

    Taxpayers can entry the ledger and report opening balances in two methods.

    1) log in to GST portal >> Go to ‘Report ITC Reversal Opening Balance’

    2)Go to ‘Services’ from the homepage >> Go to ‘Ledger’ >> Click on ‘Electronic Credit Reversal and Re-claimed Statement’ >> Click on ‘Report ITC Reversal Opening Balance’

    Archit Gupta listed 5 important measures that may assist taxpayers handle ITC reversals and reclaim higher

    -A radical reconciliation is to be executed from April 2022 until date to find out ITC claimed, reversed, reclaimed, ineligible ITC, and pending reclaims and arrive on the opening stability for the ITC reversal assertion.

    -A separate ledger is to be created within the books of accounts, if not practiced earlier, for all ITC reversals and reclaims going ahead.

    -A separate ledger within the books of accounts is to be created for momentary ITC reversals with out mixing them up with everlasting ITC reversals or ineligible ITC.

    -A path of all ITC claimed, reversed, and reclaimed is to be maintained to have the ability to map the ITC reclaims again to the preliminary ITC claims and be audit-ready.

    -Frequent reconciliations of GSTR-2B vis-à-vis GSTR-3B and buy register have to be carried out throughout tax intervals to keep away from double reclaims or lacking reclaims.

    Meanwhile, as per a report in PTI, the GST Network has enabled geocoding performance for the ‘additional place of business’ handle of GST-registered companies throughout all states and union territories. The transfer is geared toward curbing fraudulent registrations underneath Goods and Services Tax (GST) by giving bogus addresses for the aim of claiming ITC.

    Disclaimer: The views and proposals made above are these of particular person analysts, and never of Mint. We advise traders to test with licensed specialists earlier than taking any funding choices.

     

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    Updated: 21 Sep 2023, 08:24 AM IST

  • ‘ITC enabling provision to help catch fake dealers; process to be centralised’

    THE BUDGET has launched provisions for enabling restriction of pretend enter tax credit score (ITC) and it’ll assist catch these faux sellers who had been displaying a sudden spike of their provides and never paying the corresponding tax, Central Board of Indirect Taxes and Customs (CBIC) Chairman VIVEK JOHRI stated. In an interview with AANCHAL MAGAZINE, Johri stated fee rationalisation beneath GST will occur in phases because it can’t be very disruptive to income. Edited excerpts:
    Some enabling provisions about ITC beneath GST have been put within the Budget. Will it’s one thing that can have an effect on sincere taxpayers additionally?
    The vital goal of bringing on this provision, which talks about limiting ITC, is to make sure that a brand new taxpayer who has entered the system is just not capable of abruptly generate a lot of invoices for passing on ITC. We observed that previously, based mostly on our investigation into faux sellers and pretend ITC, there was one frequent trait – many of those large sellers didn’t have any revenue tax footprint, they’d no background in coping with items and companies and so they had been getting into the system. They would subject invoices of huge quantities, present a sudden spike of their output provides, not pay the tax comparable to these provides and, then, depart the system in two or three months’ time. So, we wish to have the power to determine such taxpayers, in order that in a centralised manner, with out leaving discretion within the fingers of the officer within the discipline, we’re capable of, then, say that solely a lot of the credit score be allowed within the first month; that isn’t to say that remainder of the credit score won’t ever be out there. Depending on his behaviour, we launch the remainder of the credit score, however the sole goal of getting this enabling provision is to take care of the scenario.
    The GST collections appear to have stabilised across the Rs 1.4-lakh-crore degree. The preliminary concept was to have the system mechanically detect leakages. How is it now?
    E-invoice is unquestionably serving to and we’re happening reducing the brink … The concept is that we should always be capable to universalise it for all invoices. You have invoices on the system, you could have e-way payments for items. To a big extent, you’re capable of take care of the issue of pretend invoices for items. But individuals have develop into smarter, we discover that they’re issuing faux invoices for companies additionally, and in contrast to items the place it’s nonetheless potential to trace the motion of products, in companies even that isn’t potential. So, that’s why the try is to have one supply of reality within the system, which would be the bill that we’ll try to we’ll use to assemble the GSTR-1 of all GST sellers and the GSTR-1 then auto populates the GSTR-3B. So, there’s a self checking mechanism inside the system.

    We’ve additionally tried to make checks extra rigorous on the entry level. For the registration course of, we launched Aadhaar authentication and bodily verification. The entire goal of that isn’t to harass the dealer, however to be sure that the taxpayer who’s coming in is duly recognized. It’s not a bogus entity, it’s not a benami entity. Then, after the taxpayer is within the system, we’re capable of watch his behaviour. Based on the info that we gather from these sources, we’re operating analytics on all of them. We additionally do knowledge triangulation, with different businesses, revenue tax, Customs, for instance, MCA that additionally provides us some extra clues about what’s the background. That is how we intend to proceed.
    Is textiles going to be the rapid focus for fee rationalisation beneath GST or will there be different objects? Will gas, particularly ATF, be included beneath GST?
    I’m not aware of what the GoM is desirous to proceed, however my restricted understanding is that it’s not confined to textiles. They will have a look at the general fee construction. Some sectors want extra capital…and the necessity for refunds, however, they’ll have a look at the general curiosity. The Finance Minister whereas chatting with the business chambers has stated it (ATF) will likely be taken up on the subsequent GST Council dialogue.

    So, that might imply slab modifications? Or is there a center fee or income impartial fee that’s being checked out?
    I don’t assume they’ve utilized themselves to that. There are varied choices. But clearly, no matter determination they take, it can’t be very disruptive to income as a result of that could be a concern. So, both they part it in or they lay down a trajectory of how we should always do it to get to the golden imply. The inversion factor will get corrected first, then the speed slab modifications, after which, primarily doing it in phases. It must be phased.
    The authorities has not favoured responsibility cuts for Tesla. Is the proposal off the desk?
    I don’t assume it’s truthful to talk about a specific firm’s proposal…however the present fee construction is okay. It doesn’t want any change. At the present fee construction, you could have many different firms coming into the nation, proper? They’re not speaking about rejigging the speed construction, they’re pleased with 15, 30, 60, 100 per cent, proper? Now, they take the decision based mostly on the worth chain. You need to take a name as a enterprise the place you match into that worth … There are firms which can be bringing in components for manufacturing right here. So all of the choices are there. To say that tariff is coming in the way in which of any person investing within the nation, whether or not on the market or for manufacture, I don’t assume is an accurate illustration.

  • Taxmen to provide ‘reasonable time’ to clarify causes for mismatch in GSTR-1, 3B

    Tax officers will give affordable time to erring companies to clarify causes for mismatch in turnover reported in gross sales return GSTR-1 and tax cost kind 3B earlier than initiating restoration motion for brief cost or non-payment of taxes.
    The Central Board of Indirect Taxes and Customs (CBIC) has issued pointers on restoration proceedings and mentioned that taxmen would give a “reasonable time” to companies to clarify the explanations for such mismatch.
    As per the modifications within the GST regulation efficient January 1, GST officers have been allowed to instantly provoke restoration motion towards these errant companies which confirmed increased gross sales in month-to-month return GSTR-1 however under-report it throughout tax cost in GSTR-3B.

    The transfer was aimed toward curbing the observe of pretend billing whereby sellers would present increased gross sales in GSTR-1 to allow a purchaser to say an enter tax credit score (ITC) however report suppressed gross sales in GSTR-3B to decrease GST legal responsibility. with pti

  • GST wing busts Rs 106 crore bill fraud in Odisha, accused held

    By Express News Service
    BHUBANESWAR: The GST Enforcement Wing on Monday arrested one individual for his alleged involvement in bill fraud to the tune of over Rs 100 crore.

    Sources stated, the accused Smruti Ranjan Sahoo, proprietor of SR Enterprises, had allegedly availed enter tax credit score (ITC) of Rs 19.04 crore based mostly on the faux invoices of Rs 106 crore.

    The bogus ITC was availed by elevating fraudulent buy invoices in opposition to 14 faux enterprise entities situated in Angul, Jajpur, Rourkela, Jagatsinghpur, Bhubaneswar, and Paradip.

    The accused had additionally handed the ITC to the recipients each inside and outdoors Odisha in opposition to the sale of products bought fictitiously by defrauding the state exchequer.

    Joint Commissioner of CT and GST (Enforcement, Bhubaneswar) Umesh Chandra Tripathy stated Sahoo had submitted false data relating to the situation of his workplace and in addition solid the hire settlement.

    ALSO READ | Odisha Plus Two outcomes to be introduced by July 31, says govt

    “His firm SR Enterprises did neither physically exist nor was it involved in any business. The transactions of purchase and sale showed were only on papers. In order to regularise the paper transaction, the accused routed the amount of purchase and sale through his bank account,” he stated.

    The scrutiny of Sahoo’s checking account revealed that he has proven receipts of all of the funds made in direction of the fictional sale of products, however his cost in direction of the acquisition of products from non-existing companies was discovered to be negligible.

    The mastermind has admitted to having created dummy companies to situation faux invoices and to go bogus ITC by them

    “The goods weighing in tonne were shown to have been transported by two-wheelers, three-wheelers and cars on many occasions. Revenue loss to the State exchequer could have been manifold had the fraud not been detected by the Enforcement Wing,” Tripathy stated.

    The fraud had initially come to gentle when the Enforcement Wing performed a statewide search operation relating to fictitious companies throughout November and December, final yr. It was discovered that Sahoo together with another co-accused had collected id paperwork like Aadhaar, pan playing cards, images, bankpassbooks from unsuspecting unemployed youths and farmers and misused the paperwork to create and function faux companies.

    Commissioner CT and GST Sushil Kumar Lohani have appealed to most people to not share their id paperwork, private, financial institution, and different particulars with any unauthorised individual.

  • Increased gasoline costs shouldn’t decelerate development in any method: Assocham president

    The authorities ought to enable the logistics sector to assert enter tax credit score (ITC) on gasoline purchases to assist cut back prices amid rising freight charges attributable to rising gasoline costs, stated Vineet Agarwal, managing director of Transport Corporation of India Ltd (TCIL) and president of trade physique Assocham, advised The Indian Express.
    Aggarwal famous that freight charges throughout sectors had moved up attributable to increased gasoline costs. The costs of auto fuels are at document highs throughout the nation on the again of accelerating crude oil costs and elevated central and state levies. The costs of each petrol and diesel have risen by over Rs 5 per litre since November 20, 2020, when oil advertising and marketing firms (OMCs) resumed every day value revisions after a close to two-month interval of static costs.
    “Across the industry as a whole, the cost structure has gone up and freight rates across several sectors have moved up because of the increase in fuel prices,” stated Agarwal, noting that Assocham had known as for rationalisation in Goods and Services Tax (GST) and that permitting the sector to avail ITC on fuels and lubricants would assist cut back general prices.

    Petrol, diesel and pure gasoline are at present outdoors the ambit of the GST. The Centre hiked the excise responsibility on petrol to Rs 32.98 per litre from Rs 19.98 per litre originally of 2020, and that on diesel to Rs 31.83 per litre from Rs 15.83 throughout the identical interval to spice up revenues as financial exercise fell because of the pandemic.
    “It is a bit of a concern that the increased fuel prices should not lead to any kind of inflation or essentially slow down growth in any manner, though right now it doesn’t seem like it,” stated Agarwal.
    TCIL, among the many largest multimodal logistics firms in India, has made investments in storage services and in augmenting its fleet for the distribution of Covid-19 vaccines, he stated.
    Agarwal added that India’s giant vaccination packages to manage polio and BCG vaccines had supplied the nation with key expertise which might assist in the profitable supply of the Covid-19 vaccination. He did, nonetheless, observe that there was nonetheless a must construct high quality infrastructure on the district stage and to make sure that logistics enable for last-mile supply of Covid vaccines to occur on the proper temperature. Both the Covid-19 vaccines being administered in India should be saved at a temperature between 2-8 levels celsius.
    Agarwal stated the logistics trade has lately had extra capability attributable to decrease demand and the trade was including capability to fleets as required for supply of the Covid vaccine.
    He famous that after the vaccine turns into accessible to the non-public sector, smaller vans and even motorbikes with chilly storage boxed may play a significant function in last-mile supply of the vaccine.

  • Ghaziabad News: faux agency didn’t fill GST returns, then the key of tax evasion of 14 crore rupees

    Ghaziabad: Tax evasion is happening in your complete nation, together with Uttar Pradesh’s Ghaziabad, adjoining to Delhi by taking enter tax credit score. So far, the state and central GST workforce has arrested tax evasion instances of greater than Rs 100 crore within the district however there’s nonetheless no restriction on this. On Friday, the Central GST workforce arrested accountant Ajit by raiding AKS Electrical and Electronics Pvt Ltd for tax evasion of Rs 14.19 crore. According to the workforce, firm homeowners Arun Kumar Som, Lavika Som and CEO Hridayesh Raghav are absconding. The absconding firm proprietor is attempting to pressurize the operations from totally different locations however the division officers are usually not prepared to listen to something. Only after the enter tax credit score has been deposited, the officers of the reduction division stated that no reduction can be obtained until the quantity of enter tax credit score taken is deposited. ITS may also be deposited via installment. Such disclosures have been made by officers who stated that AKS Electrical and Electronics Pvt Ltd had a turnover of Rs 350 crore final 12 months. But as a result of taking ITS this 12 months, the corporate proprietor tried to take ITS by making invoice via the bogus agency. Investigation on non-filing of GST return was billed within the identify of Bogus agency, when he didn’t file GST return, his investigation began. No existence of that firm was discovered within the investigation. After this, the investigation of the remainder of his payments began. On which ITS has been taken. No firm related to the invoice may very well be discovered. After which the matter was disclosed. When GST got here into pressure in 2017, numerous individuals fashioned bogus corporations. There was no bodily verification of this. If there was a verification someplace, a store for lease was discovered within the identify of buying and selling there. Which ended after a while. Because of which individuals get ITC by presenting the invoice of bogus agency. This recreation is happening all around the nation. The authorities’s income is being severely broken. .

  • Income Tax Dept conducts surveys at Flipkart, Swiggy workplaces in reference to bogus Input Tax Credit

    Image Source : FILE PHOTO Income Tax Dept conducts surveys at Flipkart, Swiggy workplaces in reference to bogus Input Tax Credit
    The Income Tax Department on Thursday performed surveys on the head workplaces of Instakart – a gaggle firm of Flipkart – and Swiggy in Bengaluru. The surveys have been underway in reference to bogus Input Tax Credit (ITC), information company ANI quoted sources as saying. 

     

    Meanwhile, Flipkart mentioned it was offering all required info and increasing full cooperation. 

     

    “The officials from the Income Tax Department have contacted us. We are providing them with all the required information and are extending our full co-operation. We believe we are in full compliance with all applicable tax and legal requirements,” a spokesperson of the e-commerce platform mentioned.

     

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